VANCOUVER, BRITISH COLUMBIA–(Marketwired – Oct. 26, 2015) – IBC Advanced Alloys Corp. (TSX VENTURE:IB) (OTCQX:IAALF) has released its financial results for the year ended June 30, 2015. For detailed information about IBC’s year end results, please read the Company’s financial statements and management’s discussion and analysis which are available on SEDAR at www.sedar.com.
Fiscal Year Highlights
- Revenue of $17.8 million representing a 5% increase over 2014.
- Copper Alloys revenue of $15.1 million, up 0.9% over the comparative period.
- Engineered Materials revenue of $2.7 million, an increase of 48% over 2014.
- Loss for the period was $2.8 million, representing a 1.4% improvement compared to the same period in the previous fiscal year.
Fourth Quarter Highlights
- Revenue of $3.6 million representing 17% decrease over the same period in the previous fiscal year.
- Copper Alloys revenue of $3.0 million, down 15% over the comparative period.
- Engineered Materials revenue of $541,000, a decrease of 30% over the comparative fiscal period.
- Loss for the quarter was $996,000, up 26% from the comparative period.
Commentary and Corporate Update
The annual results, which show a modest increase in sales and a substantially unchanged loss, hid two general trends in IBC’s operations: Engineered Materials divisional activity increased with the commencement of F-35 component production; and Copper Alloys sales softened as a result of declining copper prices, a much weaker oil and gas sector and a general softening in other key markets. While F-35 component production ramped up in the period, very little contract revenue was recognized in the fiscal year due to the time required for machining the castings. As a result, IBC will see most of the benefit of its fiscal 2015 F-35 production in fiscal 2016’s operating results.
Anthony Dutton, IBC’s chief executive officer commented “In the fourth quarter, we continued to ramp up production of F-35 components. After our year end, in July 2015, we continued deliveries of components to Lockheed Martin from our first contract. Shortly afterwards, in October 2015, we made our first deliveries under the second contract. The delivery times have decreased significantly as the Company is no longer managing the machining process; this change will expedite collection of sales proceeds by several months with a beneficial effect on our financial liquidity. As a result, we are encouraged that Engineered Materials financial results will improve significantly over the course of the first quarters of fiscal 2016,” continued Dutton. “The Copper side of our business is generally being affected by global macro-economic trends which have resulted in a broad softening in the manufacturing sector. We are continuing to nurture new business development initiatives which we are confident will show results in fiscal 2016 and beyond.”
In the fourth quarter, our Engineered Materials division continued to ship F-35 components for machining. Most of the revenue and margin from our first contract for F-35 components will be recognized throughout fiscal 2016 as final components from our first contract are delivered.
While Engineered Materials incurred a loss from operations in fiscal 2015 because of low plant utilization, the order backlog under contract will result in improved plant utilization and fiscal 2016 performance. The division is engaging with several aerospace and defense contractors regarding additional defence and military programs which, if the Company is successful, will not require any immediate capacity expansion.
Our Copper Alloys division generated reduced sales in the fourth quarter as a result of order deferrals by customers and a lower copper commodity price. These trends will continue to affect first quarter results in fiscal 2016.
A conference call to discuss the fiscal 2015 results will be held Tuesday, October 27, 2015 at 2:00 pm ET (11:00 am PT):
- Conference Call Dial-In Numbers:
|Canada and USA Toll Free||1-800-319-4610|
|Outside Canada and USA (direct)||1-604-638-5340|
|Callers should dial in 5 to 10 minutes before the scheduled start time and simply ask to join the call.|
- Conference Call Replay Numbers:
|Canada and USA Toll Free||1-855-669-9658|
|Outside Canada and USA (direct)||1-604-674-8052|
- Code: (followed by the # sign): 1537
|Duration: Available until end of day Thursday, November 12, 2015|
About IBC Advanced Alloys Corp.
IBC is an integrated manufacturer and distributor of rare metals (beryllium) based alloys and related products serving a variety of industries including nuclear energy, automotive, telecommunications and a range of industrial applications. IBC has 77 employees and is headquartered in Vancouver, Canada with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri. IBC is creating a dynamic global beryllium and advanced alloys company. IBC’s common shares are traded on the TSX Venture Exchange under the symbol “IB” and the OTCQX under the symbol “IAALF.”
This news release was prepared by management of IBC, which takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with manufacturing activities therefore the Company’s future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
Director of Corporate Communications
(604) 685-6263 ext. 110
Vorticom Public Relations